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WHAT IS DECORADOR?

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WHAT IS DECORADOR?

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  1. Opening message from the founder: “Thanks for taking the time to review the merits of DECORADOR as an investment in your portfolio. As an introduction of myself and the brand: I served in senior leadership positions with Target Stores, Montgomery Ward and Caldor Stores. I was a founding officer of OW Office Warehouse which was developed into a 44-store chain in 3 years and sold to OfficeMax in a trade sale. I joined LOWE’S and prepared it to open 50 big-box stores per year for 2 years so it could compete with The Home Depot. Today LOWES is the only competitor to Home Depot. I have completed retail start ups as the CEO in Sao Paulo, Brazil; Istanbul, Turkey and Warsaw, Poland. I resided in these countries, and became quite familiar with each country, its culture and retail sector. I have strong relationships with 3rd party providers and suppliers throughout the global marketplace. My companies buy from sources that sell to Target, Bed Bath & Beyond and other big box retailers. DECORADOR is as much of a high-tech play, with its emphasis on ecommerce, other associated sites and menu of value-added services as a retail play. Marketing and operating the Franchise System is another activity which creates an indefinite stream of revenues and investor returns. The short-term priority is to develop DECORADOR to profitability in Poland and exit from Poland via an IPO or trade sale. This exit strategy in Poland will provide early investors their ROI. Please enjoy the following presentation. You may access www.globalretailers.us for additional detail about DECORADOR and the emerging markets. Use the user name ‘investor’ and password ‘1234’ for the protected data. Again, thank you for taking the time to review my DECORADOR. Bill Bussey (757-472-2088) bwbussey@globalretailers.us WHAT IS DECORADOR?

  2. Welcome to Poland’s ‘capital’ of home décor!

  3. Table of Contents Opening Message fr Founder 1 What is DECORADOR? 4-5 Merchandise Strategy 6-7 So What is DECORADOR? 8 Ecommerce 9-12 In-home Sales & Services 13-14 Brick & Mortar Stores 15 Why Poland First? 16 Leadership Team 17-18 5-year Financial Summary 19 Exit Strategy 20-21 Key Take Aways 22 Long-term Vision 23-24 Closing Message fr Founder 25 Short-term Vision: DECORADOR will double its store count every 180 days and open 159 stores in Poland over five years.

  4. WHAT IS DECORADOR? DECORADOR is a highly differentiated brand from its competition with its exclusive private label collections and its design studio.

  5. WHAT IS DECORADOR? DECORADOR is a preferred Polish brand as illustrated at a store grand opening.

  6. MERCHANDISING STRATEGY - unique, value-priced & trendy products DECORADOR’S merchandise strategy offers unique, value-priced and trendy items sourced directly from producers in global home fashion markets. Soft home Bed linen, Table linen, Bedspreads, Decorative pillows, Window Decoration, Fabrics, Carpets Furniture, Glass, Porcelain, Kitchen accessories, bathroom accessories, decorative accessories Hard home

  7. DECORADOR’S merchandising strategy is anchored by its award-winning private label collections designed by its Polish designer and produced in India. Ewa Szyszka has won awards in Asia & Europe and designs exclusively For DECORADOR.

  8. SO WHAT IS DECORADOR? It is a multi-channel, low-cost and game-changing home décor retailer for emerging markets. The three channels are - Ecommerce : anchored by a dynamic, stand-alone ecommerce with a menu of value-added services that saves clients time & money. IHSS: a cadre of interior decorators and sales specialists who schedule in-home visits with Clients to plan and facilitate their home décor projects. Brick & mortar stores : three low-cost store prototypes are designed to fit any size market, which supplement the Ecommerce and IHSS channels Note:The launch of the brand in each country, after Poland will be in the above order; thereby attaining profitability faster and minimizing the ‘cash burn’ rate.

  9. Ecommerce DECORADOR is anchored by its ecommerce and 3 associated sites: Design Studio, B2B and DECO Loyalty Club. Ecommerce increases the market size from a city of 2mn to a country of 38mn in case of Poland. The adjacent home page shows the ‘award-winning’ Circles collection in an inspiring color pallet. The brand has 4 additional sites: Design Studio, B 2 B and its DECO Loyalty Club – all which generate high-value sales transactions. DECORADOR can be the amazon.com of home décor in the CEE & MENA regions.

  10. DECORADOR is anchored by its ecommerce and 3 associated sites: Design Studio, B2B and DECO Loyalty Club. The Design Studio site allows Clients throughout Poland to interact with the brand’s decorators in planning and executing a home décor project, including the installation. The Company can provide the Client with new furniture, window treatments, flooring, lighting, etc, - every item needed for a home décor project. An individual home décor project sale can run into many thousands of dollars. DECORADOR can be the amazon.com of home décor in the CEE & MENA regions.

  11. DECORADOR is anchored by its ecommerce and 3 associated sites: Design Studio, B2B and DECO Loyalty Club. The B 2 B site allows businesses to design and order a dozen or a hundred identical gifts for its employees and customers. Examples of past sales are as follows: $15,000 of special order wall paper for a small hotel remodel in north Poland – 1,000 Twenty-five dollar gift certificate order from Poland’s largest bank – 1,000 gift box sets at ten dollars per set. DECORADOR can be the amazon.com of home décor in the CEE & MENA regions.

  12. DECORADOR is anchored by its ecommerce and 3 associated sites: Design Studio, B2B and DECO Loyalty Club. DECO Club is the brands loyalty program. Members receive free gift-wrapping whenever they buy a gift or 50% discount on an upgrade gift-wrapping. In addition they receive early notifications & coupons providing discounts on items prior to an item going on sale to the public. Not only does the loyalty club offer numerous benefits for the Clients; but it provides many avenues for the Company to reduce its cost and increase sales. DECORADOR can be the amazon.com of home décor in the CEE & MENA regions.

  13. In-home Sales & Services (IHSS) • store sales Associates who perform within the top 10% in personal sales earns consideration to participate in the Interior Design training program which provides a career rather than just a ‘job’ • IHSS levels out the Company sales within a plus or minus 10% every month allowing the Company to produce a profit year round, rather than just during the Christmas selling season • IHSS project sales require minimum up front inventory investment as most product is special ordered or custom ordered. IHSS produces huge incremental revenues in installed sales • IHSS is the silver bullet of the business model; but requires a human capital commitment which few retailers understand or are capable of making - the individual store contribution can be 18%

  14. In-home Sales & Services (IHSS) the pink and the turquoise themes below were designed by Ola S. and won National Awards and was illustrated in every popular home décor publication in Poland

  15. Brick & Mortar Stores Brand has 3 low-cost prototype stores – always keeping the brand convenient for Clients P1: Mall anchor store, 10,000 sq. ft., generating sales of $3,000,000 P2: Mall store, 6,000 sq. ft., generating sales of $1,500,000 P3: Neighborhood-centric store, 3,000 sq. ft., generating sales of $500,000 An effective IHSS program will push the store contribution percent to 18%. Photos of stores

  16. Why Poland First? • 38,000,000 inhabitants with a thriving & growing middle class • 2. High GDP % Growth compared to EU & USA – 77% of growth created by private sector • 3. FDI (EUR 100 bn in last 10 years) – EUR 67 bn in EU structural funds • 4. Business-friendly government with EU subsidies & 2nd lowest CIT of 19% • 5. # 1 place to do business in crisis- 5th in Top 10 countries in world to do future business – named 1 of 10 motors of new global economy by AT Kearney • 6. Poland is an ideal country to serve as the launch of DECORADOR to other CEE and MENA countries The brand can double its store count every 180 days and plans to open 150+ stores in Poland in 5 years.

  17. Leadership Team WHO: a team of internationally experienced American start up executives combined with a team of young, intelligent and committed Polish directors Bill Bussey: Founder & Chairman – completed successful start ups in USA, Brazil, Turkey & Poland. Prepared LOWE’S to open 50 big-box stores per year to position LOWE’S as the only competitor to Home Depot. Previously he served in leadership positions in Target, Montgomery Ward and Caldor stores. Greg Frushour: President, International Franchising – served as consultant in several fortune 500 companies and as management in two fortune 10 companies. He is presently serving as an advisor & analyst to the FBI and USIC. He has extensive knowledge of the CEE & MENA regions Paul Kincaid: CFO – after serving 10 years at Ernest & Young he completed 3 start ups in the USA, served as finance director for a Polish private equity fund in Poland and completed 3 start ups in Poland; one Polish start up had offices in several CEE countries. He has resided in Poland since 1997. Patrick Barberich: Advisor to Board – after serving as Managing Director of PriceWaterhouseCoopers in VB, VA, he spent 3 years as Managing Director of PWC in Poland and recently retired as MD of PWC of Central Florida. He worked with the founder at OW Office Warehouse from 1989-92. Polish Directors: Each director is young, multi-lingual, highly educated, retail experienced and committed to DECORADOR.

  18. President Bill W. Bussey Operations Coordinator Director of Human Capital Director of Merchandising Director of Strategic Businesses Designer Graphics Warehouse Coordinator Photo Accounting Manager IT Manager E-store Administrator Value-added Services Merchandising In Home Sales & Services (IHSS) Accountant Assistant Store 1 Store 2 Store 3 Store 4 Interior Decorators Installation Window Treatments Soft Home Buyer Hard Home Buyer SOS Buyer The organization at DECORADOR with eight stores and profitability Chief Financial Officer Paul Kincaid President-International Franchising Greg Frushour

  19. 5-year Financial Forecast 5-yr. financial forecast with 9, 29, 63, 107 and 159 stores in year 1, 2, 3, 4 and 5; respectively. The brand can double its store count every 180 days and plans to open 150+ stores in Poland.

  20. Exit Strategy The preferred exit strategy is a trade sale for the 1) brand in Poland or 2) world-wide ownership of the brand. $3 million dollars is required to complete the restructuring of the brand, attain profitability and prepare for either EBRD funding or an IPO on the WSE. At OW Office Warehouse, pre-IPO investors received $28 for every $1 invested after a successful trade sale to OfficeMax in 3 years. Home Decorators Collection, a home décor ecommerce was acquired by The Home Depot in 2006 for a rumored $200 million – DECORADOR could be an entry for similar retailers aspiring to expand globally. The populations of the brand’s targeted markets could support 2,000 plus stores generating more than $2 billion in sales.

  21. Exit Strategy (after funding from the current $3,000,000 Series B PPM Offering) An application will be submitted to the EBRD for a $2,000,000 equity investment and or the Company will complete an IPO on the Warsaw Stock Exchange (WSE). NEWCONNECT – an IPO on the Warsaw Stock Exchange (WSE) in 2012 The three companies illustrated below are prime candidates for a trade sale, however other international retail conglomerates may surface too.

  22. Key Take Aways 1st) DECORADOR is a game-changer for home décor retailers in Poland and emerging markets 2nd) Poland is an ideal launch country w/one of the most stable & high-performing economies 3rd) WSE is the hottest IPO market in Europe accounting for 47% of Europe’s IPOs for 2011 Investment has potential for high returns with mitigated risk For more detailed information, please visit www.globalretailers.us or contact info@globalretailers.eu.

  23. Long-term Vision The model was validated in Poland, an ideal country to launch the brand throughout the emerging markets of the CEE & MENA regions Poland – 150+ company & franchised stores can be opened over a 5-year span - Franchises will be sold in smaller Polish cities & other CEE countries Turkey – 350 + company & franchised stores can be opened over a 5-year span – Franchises will be sold in smaller Turkish cities & other MENA countries Russia – 500+ company & franchised stores can be opened over a 5-year span – Franchises will be sold in smaller Russian cities Vision – The brand has the potential of opening 2,000+ stores generating $2 billion in sales in Poland, the CEE, Turkey, the MENA and Russia. This potential can result in a high valuation and future multiple for exiting in Poland.

  24. Long-term Vision AT Kearney, international management consultants have identified the CEE & MENA regions and Russia as some of the biggest retail opportunities on the globe Over 2,000 low-cost stores anchored by Ecommerce generating $2 billion in sales in the emerging markets of the CEE & MENA regions Thirty-three percent (33%) of the stores will be franchised stores - most in cities with less than 200,000 inhabitants in Poland, Turkey & Russia All countries other than Poland, Turkey and Russia will be candidates for Master Franchise Systems For more detailed information, please visit www.globalretailers.us or contact info@globalretailers.eu.

  25. Closing message from the founder: “In 2009, DECORADOR ended the year with 5 stores, 4 highly differentiated ecommerce sites and a 28% comp store sales increase. The brand had designed and produced 3 award-winning and exclusive private label collections in India which proved to be a compelling competitive differentiator in the merchandising offering. The brand had also implemented the In-home Sales & Services (IHSS) program; thereby diversifying itself away from a general retail sales format to a big-ticket home décor project or solutions format which also included installed sales. By late 2009, DECORADOR was within one store of attaining its breakeven sales, while other retailers were closing stores and filing for bankruptcy. The brand started preparing for an equity investment from the EBRD and or its initial public offering (IPO) on the Warsaw Stock Exchange (WSE) in 2011. The diversified business model was working… However, in early 2009 the Virginia State Corporation Commission (VSCC) initiated an investigation resulting from the production of a movie about DECORADOR into Global Retailers fund-raising activities. Throughout this 18-month long investigation, Global Retailers ceased all equity fund-raising. Some funding was generated through a Company investor loan program called DecoNote$. A series of events; the deepening global financial crisis, a deadly frigid winter in 2010 and the Polish plane crash in Russia in April 2010 further exasperated the ‘capital constraints’ of the brand. Moreover the VSCC renewed its investigation because of their interpretation of the DecoNote$ program as a security, rather than a loan. I decided to restructure the brand; thereby 1) eliminating all landlord debt, 2) closing high-cost stores and 3) reopening the brand with a lower cost structure. The brand will be re-launched 1st) with its ecommerce and associated web sites, 2nd) a refined In-home Sales & Service program with an expanded installation operation and 3rd) opening a group of eight small low-cost design studio stores generating $3.5 million in sales. The brand will breakeven at this sales level. Rather than opening a single store, I will identify a small chain of stores which can be acquired and opened in a group; thereby significantly reducing the normal ‘cash burn’ rate of a retail start up. The funding for the restructuring is furnished by the $3,000,000 Series B private placement memorandum. By opening stores in small groups, and being debt-free, the brand can double its store count every 180 days. Please contact me if you wish to discuss either the short or long-term vision for DECORADOR. Again, I do appreciate your consideration.” Bill Bussey (757-472-2088) or bwbussey@globalretailers.us WHAT IS DECORADOR?

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